Banks to Spend More of IT Budgets Offshore

Banks worldwide will be sending more of their information technology budget dollars offshore in the next three years, according to a study by Deloitte & Touche USA LLP. The study estimated that as much as 30% of the banking industry's IT budget dollars would go to offshore services by 2010, up from 6% currently.Banks can save 40% on most IT projects by offshoring them, Deloitte said. Although media reports say offshoring costs are rising, the Deloitte survey of banking IT executives found that costs rose less than 10% this year, according to 55% of the survey respondents. Banks need to get better at developing internal management skills and business processes to make offshoring as efficient as possible, Deloitte said.

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